FASHION LAW: NEIMAN MARCUS CUSTOMER DATABASE BREACH

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With Target’s recent security breach, American luxury specialty department store Neiman Marcus was targeted shortly after. The breach began back in July and had been officially confirmed this Sunday, The New York Times reported. Neiman Marcus admitted to having their customer’s credit and debit card information stolen. The company noticed the breach around mid-December when suspicious activity surrounding the usage of credit cards occurred. The first intrusion was first spotted in mid-July, the paper said.

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“We did not get our first alert that there might be something wrong until mid-December. We didn’t find evidence until January 1,” Reeder told Reuters late on Thursday.

Although Neiman Marcus promised that the information on customer’s social security numbers and birth dates were not compromised, they could not state how many credit cards were actually stolen. It was confirmed that customers who shopped online appeared unaffected by the criminal cyber-security intrusion. Personal identification numbers, or PIN numbers, were not affected as the retailer does not require PIN pads in its stores.

Customers that shopped online do not appear at this time to have been impacted by the criminal cyber-security intrusion. Your PIN was never at risk because we do not use PIN pads in our stores,” Chief Executive Karen Katz wrote in a letter to customers, a copy of which was posted on the company’s website.

Neiman Marcus, which operates 40 full-scale stores and clearance locations, also said that it was offering customers free credit monitoring for an “added layer of protection.” The company said shoppers should sign up for instructions to this service on its website by January 24th.

A contract that was formed between a consumer and an establishment entitles the committed person to have secure and legal protection for contact information. Once the agreement is acknowledged between both parties, the dealings of certain goods between the two are established, it is enforceable by law so long as they contain all the elements of a valid contract (whether they be in the form of an offer, acceptance, consideration, signing, etc.) intact.

There are a few remedies you can try during a security breach period: reduce the impact of a contravention by identifying it; minimize the impact by reducing ongoing exposure; limit the threats; repair the impact; and address the most pressing concerns.

-       Protect your reputation
-       Augment your resources
-       Mitigate regulatory impact
-       Control spending
-       Prepare for litigation

If one of the parties fails to perform their duties as specified in the contract, then it will be held liable. That is why mass-producing corporations must safeguard their establishments efficiently.

News reference via WWD and image via US NEWS

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